Greek authorities are examining a series of measures including the reduction of VAT on transport and accommodation as well as lower hospitality fees in efforts to give the tourism sector a boost after the coronavirus pandemic subsides and to recover lost ground.
More specifically, according to a report in Greek media Tourism Today, measures include the reduction of VAT on transport, including ferry and air transport, to 13 percent from the current 24 percent; the decrease in VAT on accommodation and F&B to 13 percent to apply in the second half of 2020; temporary support for hotel staff and the possibility of an increased seasonal subsidy; the reduction of airport charges; and the decrease in overnight accommodation fees (known as the “stayover tax”).
At the same time, the Greek tourism and economy ministries are aiming to focus all recovery actions on maintaining Greece’s connectivity with the world and boosting demand as well as reigniting domestic tourism interest through benefit tourism packages.
The plan is set to be finalized in the coming two months depending on the developments and impact of the Covid-19 epidemic and on the country’s economic standing.
Tourism enterprises have already been included in the government’s support packages for businesses affected by the coronavirus crisis, with 2 billion euros to be allocated to the sector. Additionally, the EU is expected to announce a series of measures to boost the tourism sector as a whole as it is a main driver of growth for Europe.